Community Bank of Bergen County, NJ Reports Third Quarter 2012 Net Income of $0.05 Per Share

Community Bank of Bergen County, NJ Reports Third Quarter 2012 Net Income of $0.05 Per Share

MAYWOOD, N.J.--(BUSINESS WIRE)-- Community Bank of Bergen County, NJ (OTCBB: CMTB) reported earnings today for the third quarter of 2012. Net income this quarter was $91,000, or $0.05 per diluted share, which is down $245,000 as compared to a net income of $336,000, or $0.20 per diluted share, for the third quarter of 2011.

The decrease in net income this quarter, as compared to the same quarter last year, was due largely to a $676,000 increase in the loan loss provision from that of 2011 ($901,000 for the quarter ended September 30, 2012 as compared to $225,000 for the quarter ended September 30, 2011), offset by a 204,000 decrease in non-interest expenses in all categories, a $185,000 increase in our tax benefits, and a $65,000 increase in total non-interest income. Net interest income only decreased slightly, as a $201,000 reduction in interest income - a result of lower outstanding loan balances in comparison to the third quarter of 2011($215,163,000 versus $219,352,000 respectively) and continued lower overall market interest rates, was offset by the corresponding savings of $178,000 in interest paid on the reduced outstanding interest bearing deposits as compared to 2011 ($274,493,000 versus $285,395,000 in total deposits). The reduced interest expense was also caused by reduced rates paid on those deposits. The increase in total non-interest income in the third quarter of this year resulted from $41,000 in rents generated from Other Real Estate Owned (OREO) properties as compared to $18,000 for the same period in 2011 and $53,000 generated from the Bank's investment in Bank Owned Life Insurance (BOLI) as compared to $19,000 for the third quarter 2011. The $204,000 cost savings for non-interest expenses in all categories, as compared to the same period in 2011, represent continued efforts by the Bank to increase efficiency in staff and overhead utilization.


For the nine months ended September 30, 2012, the Bank reported net income of $431,000, down $607,000 from its net income of $943,000 for the nine months ended September 30, 2011. The decrease in net income for the nine months ended September 30, 2012 is largely attributed to (i) a $767,000 decrease in interest income due to lower outstanding loan balances at reduced market yields, as referenced above, and (ii) an increased provision for loan losses, up $926,000 as compared to the nine months ended September 30, 2011. These amounts were offset by (i) savings in interest expense of $485,000 due to lower outstanding interest paying deposit balances at lower interest cost, (ii) income generated from the BOLI investment of $111,000 for the nine months of 2012 as compared to $19,000 for the same period in 2011, (iii) income generated from rents on OREO properties ($110,000 for the nine months ending September 2012 as compared to $32,000 for the nine months ending September 2011), (iv) a $292,000 increase in our tax benefit and (v) a $254,000 decrease in non-interest expense during the period, as compared to the same period for 2011. The decrease in non-interest expense was mainly the result of a $131,000 reduction in salary and benefit expense mainly a result of savings in salaries due to reduced staffing and recoupment of over-accruals of expenses related to the Bank's medical retirement plan, $158,000 lower expenses related to occupancy costs, a result of the re-negotiated lease of one of the Bank's branches, lower depreciation expense on Bank buildings sold in prior years and lower over-all maintenance costs on the remaining properties, and $37,000 lower expenses in other non-interest expenses category, offset by increased costs of $72,000 specifically related to OREO properties for the nine months of 2012 as compared to the same period last year.

Total Assets were reduced from $309,871,000 at December 31, 2011, to $302,573,000 at September 30, 2012, particularly due to the low volume of new loans through September 30, 2012 and the corresponding reduction of interest paying deposits.

The Bank continues to proceed in working out of its non-accruing asset portfolio ($10,587,000 at September 30, 2012 as compared to $12,614,000 at December 31, 2011). The Bank's capital closed at $25,959,000 at September 30, 2012, with book value per share at $15.63 in comparison to $15.51 at December 31, 2011.

About Community Bank of Bergen County

Established in 1928, Community Bank of Bergen County, NJ (CBBC) serves the northern New Jersey community with four locations in Rochelle Park, Maywood, Fair Lawn and Garfield. Dedicated to superior service, the bank offers a range of customized personal and business banking products and the convenience of 24-hour ATMs and online banking.

With lending decisions made locally, and a responsive management team, Community Bank of Bergen County is committed to providing an exceptional banking experience.

For more information visit the Bank's web site at www.cbbcnj.com.

COMMUNITY BANK OF BERGEN COUNTY, NJ AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
AS OF:

Assets

September 30, 2012
(Unaudited)
Dollars in Thousands

December 31, 2011
(Unaudited)
Dollars in Thousands

Cash and balances due from depository institutions:

Non-interest-bearing balances and currency and coin

$

3,661

$

4,972

Interest-bearing balances

10,503

7,488

Securities

Held-to-maturity securities

32,804

36,381

Available-for-sale securities

17,055

21,139

Loans and lease financing receivables:

Loans and leases, net of unearned income

$

215,163

$

219,872

LESS: Allowance for loan and lease losses

3,360

2,941

Loans and leases, net of allowance

211,803

216,931

Premises and fixed assets (including capitalized leases)

6,677

6,772

Other Real Estate Owned

7,117

6,373

Other assets

12,953

9,815

Total Assets

$

302,573

$

309,871

Liabilities

Deposits:

Interest-bearing

$

226,020

$

235,904

Non-interest-bearing

48,473

45,806

Total deposits

$

274,493

$

281,710

Other liabilities

2,121

2,367

Total Liabilities

276,614

284,077

Equity Capital

Common Stock $5 par value; 1,800,000 shares authorized; 1,728,000

shares issued; 1,660,474 and 1,662,874 shares outstanding, respectively

8,640

8,640

Surplus

3,968

3,968

Treasury Stock

(1,531)

(1,510)

Stock Options

175

154

Retained earnings

14,609

14,410

Accumulated other comprehensive income

98

132

Total Equity Capital

25,959

25,794

Total Liabilities and Equity Capital

$

302,573

$

309,871

Capital Ratios:

Tier 1 leverage ratio

8.48%

8.21%

Tier 1 risk-based capital ratio

11.95%

11.73%

Total risk-based capital ratio

13.21%

12.98%

COMMUNITY BANK OF BERGEN COUNTY, NJ AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME

Quarter Ended
September 30,

Nine Months Ended
September 30,

2012

2011

2012

2011

(Unaudited)

(Unaudited)

Income Statement

Dollars in Thousands

Dollars in Thousands

Interest and fee income:

Interest and fee income on loans

$

3,161

$

3,289

$

9,469

$

10,073

Interest income on balances due from depository institution

3

9

12

28

Interest and dividend income on securities

209

277

726

872

Interest on federal funds sold

0

0

0

1

Other interest income

11

10

32

32

Total Interest and fee income

3,384

3,585

10,239

11,006

Interest Expense:

Interest on deposits

708

886

2,234

2,719

Total Interest expense

708

886

2,234

2,719

Net Interest Income

2,676

2,699

8,005

8,287

Provision for Loan Losses

901

225

1,951

1,025

Non-Interest Income:

Service charges on deposit accounts

122

104

335

305

Net servicing fees

56

62

167

197

Net gains (losses) on sale of OREO

0

0

0

39

Other non-interest income

96

43

224

54

Total non-interest income

274

209

726

595

Realized gains (losses) on securities

0

0

19

0

Non-interest expenses

Salaries and employee benefits

1,007

1,106

3,225

3,356

Expenses on premises and fixed assets

271

325

850

1,008

Other non-interest expenses

759

810

2,439

2,404

Total non-interest expenses

2,037

2,241

6,514

6,768

Income before Income taxes:

12

442

285

1,089

Income taxes (benefit)

(79)

106

(146)

146

Net Income

$

91

$

336

$

431

$

943

Earnings per Share

$

0.05

$

0.20

$

0.26

$

0.57

Forward-Looking Statements

This press release and other statements made from time to time by Community Bank of Bergen County's management contain express and implied statements relating to our future financial condition, results of operations, credit quality, corporate objectives, capital, liquidity and other financial and business matters, which are considered forward-looking statements. These forward-looking statements are necessarily speculative and speak only as of the date made, and are subject to numerous assumptions, risks and uncertainties, all of which may change over time. Actual results could differ materially from those expected or implied by such forward-looking statements. Risks and uncertainties which could cause our actual results to differ materially and adversely from such forward-looking statements include the current economy of the country in general and how it is affectingthe financial industry specifically; volatility in interest rates and the shape of the yield curve; increased credit risks and risks associated with the real estate market; the potential for increased non-performing loans;operating, legal, and regulatory risk; economic, political, and competitive forces affecting the company's lines of business; the extent and timing of actions of the Federal Reserve Board and the New Jersey Department of Banking and Insurance ; customer acceptance of our products and services; and other risks and uncertainties. Any statements made that are not historical facts should be considered to be forward-looking statements. You should not place undue reliance on any forward-looking statements. We undertake no obligation to update forward-looking statements or to make any public announcement when we consider forward-looking statements to no longer be accurate, whether as a result of new information or the occurrence of future events, except as may be required by applicable law or regulation.



Community Bank of Bergen County, NJ
Peter A. Michelotti, 201-587-1333
President and CEO
investorrelations@cbbcnj.com

KEYWORDS: United States North America New Jersey

INDUSTRY KEYWORDS:

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